The Credit Crunch which has resulted in much higher interbank rates continues to benefit savers. The Halifax's flagship online savings account, the 'WebSaver' on face value offers a relatively low interest of just 5.3%, but dig a little deeper and you would be surprised by the ultra short-term fixed rates currently available with the 3 month rate surging to 6.88% AER

The instant access Halifax WebSaver account serves its purpose in day to day activity as stop gap for short-term deposits, with the longstanding key benefit of instant transfers between accounts such as the current account as well as including standing order facilities. Though at 5.3% the instant access rate does not represent a great rate for anything other than ultra-short-term holdings, especially given what's lurking under the Halifax hood barely a few clicks away are :

I last highlighted the benefits of Halifax websaver on 21st September 2007, and warned that the longer term interest rate fixes may not last, which is now transpiring as the 2 year fix drops to 6.50% from 6.75%.

20th October 2007

21st September 2007

16th July 2007

Term	AER	Gross pa	Net pa
3 months	6.88%	6.71%	5.37%
6 months	6.40%	6.30%	5.04%
9 months	6.45%	6.40%	5.12%
1 year	6.50%	6.50%	5.20%
2 years	6.50%	6.50%	5.20%

Term	AER	Gross pa	Net pa
3 months	6.27	6.13%	4.90%
6 months	6.71	6.60%	5.28%
9 months	6.45%	6.40%	5.12%
1 year	6.30%	6.30%	5.04%
2 year	6.75%	6.75%	5.40%

Term	AER	Gross pa	Net pa
3 months	6.29%	6.15%	4.92%
6 months	6.40%	6.30%	5.04%
9 months	6.50%	6.45%	5.16%
1 year	6.53%	6.53%	5.22%

The short-term 6.88% fix represents an excellent 3 months rate, though there are now much better rates on offer from other institutions for the longer-term which may not be around for much longer.

Key Notes are -

* The Accounts are fixed term and therefore not suitable if you want your money earlier than the term of the fixed rate.

* Minimum Deposit is £500

* A Maximum of 5 websaver's can be held by customers

By Shahla Walayat
http://www.moneyforums.co.uk

Moneyforums is a FREE site which provides UK Money Saving Guides, Tools and Forums including - Credit Score Calculator and the Savings Calculator . Mortgage and Tax Calculators. Money Saving Guides such as Credit Card Stoozing , Savings Tree , Money Saving Guide. Personal Finance Discussion Forums open to ALL, supported by experienced moderators, to discuss any personal finance topics from The best Savings & Deposit Accounts , Regular Savers and Cash ISA's and more.

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